Fixed Costs That Continue to Exist Even After a Product

question 185

Multiple Choice

Fixed costs that continue to exist even after a product line is discontinued are called

• A)unavoidable fixed costs.
• B)avoidable fixed costs.
• C)variable fixed costs.
• D)relevant fixed costs.

Recognize the distinction between controllable and uncontrollable costs in management reporting.

Identify the types of costs associated with joint production processes.

Understand the principles of responsibility accounting in organizational structures.

Apply the concept of value basis for joint cost allocation to specific cases.

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